The UK housing crisis has reached a point where people have heard so many broken promises that they don’t want to listen anymore, it certainly is no longer front page news.
Property development finance and planning permission is cited by many property developers as the two major roadblocks for getting new housing development underway.
The housing crisis is further exacerbated in London because of huge property prices.
One company intend to use all of this to their advantage, property developer Telford Homes plans to boost its finances building these badly needed homes, company claims
Telford Homes says that the shortage of homes around the £500k mark is creating a huge demand, whilst, sales of more luxury developments in capital remain ‘subdued’
The company plans to use its property development finance to build properties in ‘non-prime’ locations across London for an estimated £530,000.
Property prices in some of London’s more affluent areas have dropped by as much as 14 per cent, with property investors baulking at the high prices and hefty stamp duty charges.
Telford Homes is not telling us anything we don’t already know, the Mayor himself has overturned property planning permission in Barnet to allow for more affordable homes in the capital.
What would make a real difference is easier access to property development finance for the smaller companies involved in the property development industry.
Telford Homes said it has 4,000 new builds in the pipeline across London.
Telford Homes is focused on the build-to-rent sector, with contracts for nearly 500 homes worth more than £230million under its belt.
Jon Di-Stefano, chief executive of Telford Homes, commented
‘We are focused on reducing risk through forward sales, limiting our need for external debt finance and delivering higher capital returns and this fits perfectly with our strategic move into the build to rent sector.
Last month, data from the Office for National Statistics revealed that the average cost of a home in the UK was £226,000 in July, which is £11,000 higher than in July last year.
The government can make a huge dent in the housing crisis if it follows up on some of its campaign promises and help SME property developers, streamline the planning permission process and most importantly help those to help those who need greater access to property development finance.